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Inventory Costing Methods-Periodic Method The Lippert Company uses the periodic inventory system. The following July data...

Inventory Costing Methods-Periodic Method
The Lippert Company uses the periodic inventory system. The following July data are for an item in Lippert's inventory:

July 1 Beginning inventory 40 units @ $9 per unit
10 Purchased 60 units @ $10 per unit
15 Sold 70 units @
26 Purchased 35 units @ $11 per unit

Calculate the cost of goods sold for July and ending inventory at July 31 using (a) first-in, first-out, (b) last-in, first-out, and (c) the weighted-average cost methods. Round your final answers to the nearest dollar.

A. First-in, First-out:
Ending Inventory
Cost of Goods Sold:
B. Last-in, first-out:
Ending Inventory
Cost of Goods Sold:
C. Weighted-average cost:
Ending Inventory
Cost of Goods Sold

Solutions

Expert Solution

FIFO METHDO
COST OF GOODS AVAILABLE FOR SALE COST OF GOODS SOLD CLOSING STOCK
Date Particulars Units Cost Per unit Total Units Cost Per unit Cost of Goods Sold Units Cost Per unit Ending inventory
July.01 Beginning Balance                          40 $                9.00 $                     360                      40 $           9.00 $                 360
July.10 Purchases                          60 $             10.00 $                     600                      30 $         10.00 $                 300                      30 $         10.00 $                 300
July.26 Purchases                          35 $             11.00 $                     385                      35 $         11.00 $                 385
Total Goods Available For sale                        135 $                  1,345                      70 $                 660                      65 $                 685
LIFO METHDO
COST OF GOODS AVAILABLE FOR SALE COST OF GOODS SOLD CLOSING STOCK
Date Particulars Units Cost Per unit Total Units Cost Per unit Cost of Goods Sold Units Cost Per unit Ending inventory
July.01 Beginning Balance                          40 $                9.00 $                     360                      40 $           9.00 $                 360
July.10 Purchases                          60 $             10.00 $                     600                      35 $         10.00 $                 350                      25 $         10.00 $                 250
July.26 Purchases                          35 $             11.00 $                     385                      35 $         11.00 $                 385
Total Goods Available For sale                        135 $                  1,345                      70 $                 735                      65 $                 610
WIGHTED AVERAGE COST METHOD
COST OF GOODS AVAILABLE FOR SALE COST OF GOODS SOLD CLOSING STOCK
Date Particulars Units Cost Per unit Total No. of Kg Cost Per unit Cost of Goods Sold No. of Kg Cost Per unit Ending inventory
July.01 Beginning Balance                          40 $                9.00 $                     360
July.10 Purchases                          60 $             10.00 $                     600
July.26 Purchases                          35 $             11.00 $                     385
Total Goods Available For sale / Avg. Price                        135                    9.96                      1,345                      70               9.96                     697                      65               9.96                     648
Answer =
FIFO LIFO Average Cost
Ending inventory $                   685 $                 610 $                     648
Cost oF Goods Sold $                   660 $                 735 $697

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